Landlords insurance can cover a number of different areas in which a problem could arise. One of these is loss of rent. Thousands of landlords each year in the UK find themselves victims to tenants who don’t pay. If you rent out a property – or a number of properties – losing your rent could create a number of potential financial problems. For this reason, you should take out landlords rent insurance.
Landlords rent insurances covers for a variety of possible situations (all of which involve the loss of rent in one way or another). However, some insurance policies will not include all of these as standard. You must carefully read the terms and conditions of any policy before choosing it.
Typically, landlords rent insurance includes protection that comes into play when a tenant leaves your property without paying what they owe. It is sometimes impossible to track them down after they have left. After informing the police of the incident, you should contact your insurance company to claim back the rent they should have paid.
If a tenant is constantly making their rent payments late (or simply isn’t paying them at all) you may need to enlist legal help to evict them. Rent insurance will cover any legal costs you incur in this process. Some insurance companies will pay a reduced rate of rent for a period of time until you are able to find a new tenant.
If your property is damaged, and you are unable to let it, landlords rent insurance can help with the loss of rent. Usually, companies will pay out for a number of months; they will specify how many in the policy, so you should check this. Always opt for an insurance policy that is good value and covers your circumstances.